The African Development Bank Group has significantly upgraded its economic growth projections for Algeria, forecasting a real GDP growth rate of 4.1% in 2026 — well above the previous estimate of 3.4% — and 4.2% in 2027, according to the institution’s 2026 Africa Economic Outlook report presented in Brazzaville.
Algeria’s economy continues to demonstrate strong momentum, driven by public investment and rapid expansion of non-hydrocarbon sectors, even amid global geopolitical tensions and volatile energy markets.
The Bank’s projections align with Algeria’s 2026 Finance Law, which also targets 4.1% growth this year. Inflation has dropped sharply from 4.4% in 2024 to just 1.7% in 2025, reflecting slower food price increases.
Algeria also ranks among Africa’s most developed nations by Human Development Index, with social policies successfully improving living standards and reducing inequality, the report confirmed.
